Treasury yields choke Uganda’s corporate bond market

Uganda is attempting to revive its corporate bond market by encouraging companies to use credit ratings, sinking funds, and financial guarantees to attract investors. The Capital Markets Authority (CMA) stated that high returns on government securities have made corporate bonds less attractive, as companies face higher borrowing costs. To stimulate issuance in the primary market, the CMA is raising awareness among business owners about the benefits of corporate bonds and promoting the use of tools like guarantees and sinking funds.